HotelBenchmark Launch Country Survey for India
In response to the rapid growth of the hotel market in India over recent years, Deloitte has launched an India edition of the HotelBenchmark Survey. The India survey is another first for Deloitte’s HotelBenchmark team and is being showcased this week in New Delhi at the World Travel Tourism Council’s 5th Global Travel & Tourism Summit.
The new survey, which will provide monthly rate and occupancy performance data, tracks 20 markets across the country - providing analysis by population, size of hotel, star rating, market area and city.
Hotel performance in India is booming. Lower costs of travel following the liberalisation of the airline industry as well as reduced security concerns due to improved relations with Pakistan have helped boost performance. Considering the depressed performance during the Kashmir situation, mid 2002 into 2003, revenue per available room (revPAR) has not only returned to previous levels but has also exceeded performance achieved prior to this incident. For the 12-months to February 2005, revPAR in hotels throughout India (mid-market and above) increased by 29%, compared to the same period ending February 2002.
Alex Kyriakidis, Managing Partner of the Deloitte Global Tourism, Hospitality & Leisure industry team said: “A strong economy and increasing inward investment have elevated India’s international profile. With a domestic tourism market roughly one third of the total international arrivals received by all global markets - it’s exciting to watch. The evolving business dynamics in India continue to provide the hospitality industry further potential for impressive growth as an international destination.”
Mani Bharadwaj, Senior Director at Deloitte India added: “Hotel companies are responding to the growing domestic market by adding India to their development agenda for mid-scale products. In addition to Indian Hotels’ successful launch of a new mid-scale product, IndiOne, hoteliers are busy preparing for the introduction of international brands like Ibis, Holiday Inn Express and Courtyard by Marriott to India.”
He also mentioned: “Infrastructure and geo-political concerns continue to limit India’s ability to develop as a tourist destination. Fortunately recent government initiatives including the liberalisation of the airlines and tourism awareness campaigns such as ‘Incredible India’ and ‘Atithi Devo Bhavah’ - take India one step closer to achieving its true potential.”
p>Commenting on the launch of the India survey, Julia Felton, Executive Director of HotelBenchmark at Deloitte said: “We are delighted to be the first to provide hoteliers with monthly performance data on markets across India. Given the sheer volume of the ever-increasing domestic tourism market, vigorous growth of the airline industry and the expanding business community - it is not surprising that global hotel companies are racing to increase their presence in India.”